News - Spanish government wants to attract more foreign property buyers

The Spanish government is keen to attract more foreign buyers. A national commission (comprising Government officials and representatives from the Notaries, Registries, and Chamber of commerce) is set up to find out how to sell more properties. Now the regional government in Valencia has also set up a commission to study ways to sell (and rent) more homes to foreigners. In recent years, 23% of properties sold in Valencia have been bought by foreigners.

‘We have to find out where the housing stock is and who the potential buyers are,’ said Isabel Bonig, the Valencian minister responsible for housing. She added that 30% of all sales to foreigners in Spain are in Valencia. Alicante is the most popular area with foreign buyers, accounting for 85% of sales.

There is evidence that foreign buyers are returning to the Spanish market. According to statistics property sales made by foreign residents in Spain experienced an increase of nearly 25% in the 3d quarter of 2011 compared to the same period in 2010. Alicante leads the field when it concerns purchases by foreigners. The majority is coming from Scandinavia, The Netherlands and Belgium, but the English market is also increasing.

Experts are suggesting that tax breaks, low interest rates on savings accounts and the lower selling prices of properties will be the main factors encouraging buyers to hunt down bargains. They are confident that the demand will be there in 2012 if the price is right and if banks will lend.